The November 14 natural gas contract rallied up to a new 1-month high at 4.178 in early trade on Tuesday but couldn’t hold the gains as it sold back off into the close. The contract finished the day with a .033 loss settling at 4.121.
Buying has come in during the overnight session rallying the November contract back toward “breakout” resistance at the 4.170-4.200 area. A breakout above 4.200 would turn the market trend back higher with the 200 day moving average at 4.355 being the next upside resistance.
If resistance holds, Tuesday’s 4.098 low will be the first area of support followed by the 10 and 40 day moving averages at 4.010 and 3.990, respectively. Longer term support are previous daily lows set over the past 11 weeks at the 3.780-3.850 level. This lower support could again be tested if today’s breakout attempt fails.
Technical Indicators: Moving Average Alignment – Neutral-Bullish
Long Term Trend Following Index – Bullish
Short Term Trend Following Index - Bullish
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